Owning multiple properties ‘still a minority sport’ despite 30% increase

According to a think tank, the ratio of adults in households having several properties has seen a 30% increase during the 21st Century alone.

About 10.3% of adults were in households with multiple property assets in 2012-14, contrasted with 7.9% in 2000-02, recording a 30% jump, a study by the Resolution Foundation discovered. It said 5.2 million people now own a second house.

Combined with declines in home ownership generally, the increase of second home-owning in 21st Century Britain is behind a rising concentration of property assets, according to the study, whose job strives to better living standards for individuals on low to middle incomes.

It also stated that one in 10 adults has multiple sources of property wealth whereas, four in 10 adults have no property wealth at all, a rise from 35% to 40% in 2000-02.

The study discovered that alongside a rise in the number of individuals with extra property, the average worth of assets held in these properties has increased by a fifth (20%) in real terms between 2000-02 and 2012-14.

In terms of generations, baby boomers aged 52 to 71 were most likely to have many properties, this is more than half (52%) of all the wealth held in extra properties.

Generation X, whose age lies between 37 to 51, accounts for a quarter (25%) of people who own extra property wealth.

Millennials, on the other hand, whose age is 36 and below, own a meagre 3% of the additional property assets, the study has found.

Laura Gardiner, a senior policy examiner at the Resolution Foundation, announced second home owners are more likely to be baby boomers living in the South and East of England, who are very affluent compared with their peers.

She said: “Multiple property ownership is still a minority sport, but a growing one that represents a significant boost to the wealth pots of those lucky enough to own second homes.

“People with second homes not only have an investment that they can turn to in times of need, for instance in later life when care is required but if the property is rented out, they also see a boost to their incomes here and now.”

The conclusions were based on multiple sources, including Office for National Statistics’ data.